Abandoned privatization by musk: Wall Street questioned more. The industry recommended the appointment of COO
Sina Technology News Date: August 28-morning news, recently Tesla's CEO, Elon Musk (Elon Musk), announced the abandonment of the plan to privatize Tesla, causing widespread public concern. Wall Street analysts believe that Musk's behavior has seriously damaged Tesla's reputation;from
lawyerIt is believed that Musk raises regulatory concerns, and industry insiders suggest that Tesla should designate a COO to help Musk run the business.
On Friday evening, Musk said on the company's blog that Tesla would continue to hold its position as a public company due to the resistance of current shareholders to Tesla's privatization plan.
Musk issued a Twitter message on August 7 stating that he is considering privatizing Tesla for $ 420 per share. In a few weeks, the news led to controversies among investors and turmoil in the share price, and the outside world questioned Musk's claim for funding.
Analysts have different opinions
RBC Capital Markets believes that what happened last month has damaged Tesla's reputation among investors. Analyst Joseph Spak pointed out in a research report on Sunday: "We believe that the credibility of Tesla has been hit." This blog post reinforces the idea that the entire event is not planned or complete. In the past few years, Tesla has made a number of controversial statements. Of course, the funds have not been confirmed and the capital has insufficient interest to privatize Tesla for $ 420. "
Tesla shares fell 1.1% on Monday.
Spike repeated the rating of Tesla's retail price of $ 315 and the flat with the broader market. The target price is 2% lower than Friday's closing price.
Citi research said that the decision of Musk investors will focus their attention on the fundamentals and financial performance of Tesla. Analyst Itay Michaeli said in a research report on Sunday: "Since privatization is not going to happen at the moment, we believe that we protect the downside risk for Tesla and try to divest the equity as quickly as possible.from
financingIt's wise. "
McLean repeated it to Teslafrom
stock"Neutral / High Risk" rating and a target price of $ 356.
Critics question the financial situation of Tesla. Last year the company lost almost $ 2 billion. In the first two quarters of this year, Tesla burned about $ 1.8 billion in cash, taking into account capital investment. From the end of the second quarter, Tesla had $ 2.2 billion in cash.
Some analysts, however, are optimistic about Tesla's statement on Friday. Nomura's analyst, Romit Shah, said he was happy with the statement because the board of directors of Tesla repeated his support to Musk.
In his research report, he said: "After Musk said last week that Tesla will maintain the status of listed company, the board has issued a statement stating that they fully support Musk and that he will lead the company to further develop Come, this is a huge relief, because Tesla can not do without Musk. & # 39;
Shah repeated the "buy" rating on Tesla shares, but lowered the target price from $ 450 to $ 400.
For the position of the analyst, Tesla's answer is still a public statement from Musk.
Or cause regulatory attention
Teresa Goody, a former US Securities and Exchange Commission (SEC) lawyer, said in an interview with CNBC on Monday that Musk's arrogance may cause regulatory attention throughout the incident.
She said, "What the SEC might be wary of is that, as the New York Times interviewed him, he said," I do not regret any Twitter message. "Many people believe in you and lose a lot of money." Guti was the SECfrom
lawAttorney at the consultancy firm, currently CEO of The Goody Group, a consultancy firm.
The news about the privatization of Twitter published by Musk shocked Wall Street, and the subsequent series of measures failed to suppress investors and regulators.from
Guti said: "I think everything is clear, is a good thing, now the issue of privatization is clear and the market chaos is over, but the doubts of the SEC will continue."
According to a report by the New York Times on August 15, the SEC issued a summons to Tesla.from
overviewMusk claims that the act of confirming funds is in conflict with securities legislation.
Guti pointed out that Musk & # 39; s blog on Friday further proved that "basic due diligence" is not enough. "Before the public offer is made," it is often necessary to discuss how many shares the institutional and private shareholders can keep in the privatized Tesla.
Recommended by the industry to appoint COO
Chrysler's vice-president, Jim Press, believes that the board of Tesla should consider restricting the use of Twitter by Musk and finding a "No. 2 character" for Musk. He said: "Twitter helps communicate directly, which offers a number of advantages, but the use of Twitter requires discipline and must be controlled."
Price also said: "Twitter has become a direct channel for communication with the public. In a well-run company, you need to coordinate and continue the internal communication strategy of the organization." Activities on Twitter need to go through more formal channels, making it part of the outgoing voice of the company. "
Gabe Hoffman, the well-known short-seller and founder of Tesla of the Accipiter Capital Management hedge fund, believes that Musk's Twitter message about privatization is not just a mistake in business communication. "This is the worst and most naked securities fraud I've seen at CEOs since I've been working as a hedge fund manager for 18 years, and I believe that Musk will no longer be the CEO of Tesla in the coming months."
Columbia University Business School Professorfrom
William· William Pietersen believes that the behavior of Musk is partly attributed to the board of directors of Tesla. "When you look at the supervisory responsibilities of the board, that is, to ensure that there is a strong strategy to manage the company, that there is a team to implement the strategy and support the CEO In order to complete these measures in a way that is in the interest of the shareholders, I think there are fundamental Governance problems. "
However, he also believes that Musk does not necessarily have to leave, but must reconsider how the company works.
Peterson pointed out: "The truth of the matter is a difficult question: whether the original visionary leader can lead a large number of complex organizations with major operational problems." Leadership is team business, not personal matters. Company, then I can find a strong leader who can lead a strong team. "(Qiu Yue)